DEX - Decentralized Exchanges
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Decentralized exchanges use smart contracts to enable traders to execute orders without the use of a middleman. Centralized exchanges, on the other hand, are controlled by a centralized institution, such as a bank, which is otherwise engaged in financial services and seeking profit.
Users can trade directly from their wallets via decentralized exchanges by interacting with the trading platform's smart contracts. Traders safeguard their cash and are personally liable for their loss if they lose their private keys or send funds to the incorrect addresses.
Popular decentralized exchanges are based on leading blockchains that allow smart contracts. They are constructed on top of layer-one protocols, which means they are constructed directly on the blockchain. The most widely used decentralized exchanges are built on the Ethereum blockchain.
(Polygon)
